Newport council to consider faster pension payoff

The Newport Beach City Council will consider a plan Tuesday night to more quickly fund employee pensions.

Instead of rolling forward the unfunded pension liability — the difference between the amount the city will owe in retirement benefits and the money it has set aside to fund them — the city is considering accelerating the payments.

The move could cost more upfront but save money in the long run.

During a meeting Monday, the city’s finance committee discussed proposals to pay off a projected $273-million unfunded liability to the California Public Employees’ Retirement System in 19 years, 15 years or 10 years. The city is currently operating on a 30-year pension plan.

The committee is made up of Councilmen Mike Henn, Keith Curry and Tony Petros. They will recommend adopting the 19-year plan, which would cost the city about $23 million during the next five years but save an expected $129 million over 30 years, according to a staff report.

“It will have less of an impact on our budget and be the greatest amount of savings for our contribution,” Curry said.

Curry added that if the city decides to use a formula that pays off the unfunded liability more quickly, officials would have to take money from other projects to fund it.

The council meeting will begin at 7 p.m. at City Hall, 100 Civic Center Drive.

Master plan for the arts

During a study session at 4:15 p.m., the City Council will review Newport Beach’s Arts and Culture Master Plan, which was approved by the Arts Commission this month.

The plan details 10 recommendations for improving the city’s dedication to the arts, including establishing art-friendly city policies, creating a staffed division dedicated to arts and culture and retaining the Balboa Theatre site for city use.

The plan will be voted on by the incoming City Council after Jan. 1.